Monero’s (XMR) Activity Slows Considerably as Crypto Investors Ponder Network Forked Status
In December last year, activity on the Monero network recorded an incredible 3.2 GB, which was its al-time high. However, by October it only reached slightly above 1.2 GB, the lowest it has seen since February 2017. According to data from the block explorer Monero Blocks, the average blockchain growth rate of Monero is 1.79 GB.
Possible Reasons for Downward Trend
According to Crypto Briefing, a cryptocurrency news outlet, a source familiar with the issue spoke to them, stating that the downward trend of Monero activity indicate a ‘definite’ drop in trading activity. According to the source, this was attributed to the strong price correction that has been going on for some time now.
Apart from this, the source also blamed the decline in Monero block growth to its aggression against ASIC mining rigs. Monero had a hard fork in October, which changes its hashing algorithm to prevent XMR ASICs from conducting any mining operations. In an email to Crypto Briefing, the source said that:
“Monero’s forks to kick out ASIC miners dramatically reduce the network’s hashrate and often price follows hashrate.”
The decision by ShapeShift, which is one of the most popular cryptocurrency exchanges for Monero users, to start subjecting users to KYC checks could also have contributed to Monero woes. The platform started conducting basic checks in mid-September so as to remain compliant with the U.S. laws. On this point, the source told Crypto Briefing that:
“Monero is often the go-to coin for anonymity transactions and Shapeshift was a popular exchange to exchange value into Monero….However, Shapeshift is moving toward KYC and Monero users generally don’t like that.”
As of November, Monero’s block growth is at 361 MB. Experts believe that the coin could maintain this growth, probably hitting 700 MB by the end of the month, which is still low considering that it has reached incredible figures in December last year.